Ok so we are done with activity from the Fed QE2 was better than expected, the Fed has pumped in $600 bn which will be done in a phased manner $75bn a month..almost a cautious outlook. Activity all this while unexpected increases then decreases in Oil Stocks, Strengthening dollar, weakening dollar blah blah ....QE2 caused a weakened dollar hence rise in commodity prices, so we see that Oil was stuck in a range 80-84 and has now broken free, moved into a higher range..obvious reasons as mentioned above weakening dollar, explosion of intrinsic values across commodities..and welcome inflation too now with QE2. Result gold prices at an all time high, narrow yields.
First it was the Feds Action with QE2, then some action with Japan, China, whats the new hype in town ? now with focus on Europe with the European Debt back in focus pressurizing the Euro. Euro was expected to touch $1.43 which it almost did..we are seeing a stronger dollar for this week which is having its effect on Oil Pricing. Past two days oil has traded in a range between $85-87.70. A mellow down with this news, focus on Jobs, Oil Stocks, further economic action will decide the fate ahead. Once oil cross $87.70 expect a higher range $87-$90. But again on the day trading side past two days have been jittery, yesterday we saw clear up moves during the European Session and an opposite effect during the American session.
Today has been nuts bulls are low in confidence and stop hunters are having all the fun they can. $86.80-$87.00 is a narrow range its trading for now. Will get back with some charts too.
Happy Trading till then.. !
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